Oilsands Quest Inc. Extends Rights Offering Subscription Period

Oilsands Quest Inc.

is extending the rights offering announced on July 18, 2011. The Rights Offering was originally scheduled to expire on August 15, 2011 and the Company is extending the period by two weeks in order to ensure that its shareholders have adequate time to consider and participate in the offering. Holders of the subscription rights will now have until 5:00 p.m. Eastern Daylight Time (

) on August 29, 2011 to exercise their rights or to deliver a notice of guaranteed delivery (in the case of shares held in an account with a broker, bank, or other institution). As previously announced, each holder of Oilsands Quest's common stock on July 28, 2011 received 0.816 subscription rights per share held for a total of 300,000,000 rights. The rights can be exercised at $0.20 per full share of common stock of Oilsands Quest Inc., which is a 40 per cent discount to the closing price on July 18, 2011. Other than the new expiration date for the Rights Offering, all of the offering terms described in Oilsands Quest's prospectus dated August 2, 2011 remain the same and apply during the extended period of the offering. Full details of the Rights Offering were disclosed in the prospectus supplement sent to Oilsands Quest shareholders.